Capital gain

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When selling a residential property, the full amount received from the buyer, regardless of how it's paid (DD, cheque, etc.) or what's stated on the sale deed, is considered the sale consideration for capital gains tax purposes. Even if a portion of the payment isn't explicitly mentioned in the sale deed, it should still be included in your income tax return. The capital gains are taxable in the year of transfer, even if the full payment hasn't been received yet.

Swamy

Swamy (Querist)
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27 August 2020 Sold a residential property for 40 lakhs. In sale deed govt. Value of 18 lakhs is shown & received DD for that. Remaining 22 lakhs is received by cheque & deposited in bank. Can the whole 40 lakhs be shown as sale consideration for computing capital gains in income tax return.

CA Ankith Jain

CA Ankith Jain (Expert)
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28 August 2020 Yes 40L will be sale consideration.

Harshit Bangar

Harshit Bangar (Expert)
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28 August 2020 no that will not be your sale proceeds part

Swamy

Swamy (Querist)
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30 August 2020 Remaining 22 lakhs is not mentioned in sale deed. Can we still show it as sale consideration?. Do we need agreement made between buyer & seller as a proof for income source

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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31 August 2020 The full value of consideration received or to be received by the seller as a result of transfer of his capital assets is to be shown in the books of account and accordingly in ITR. Capital gains are chargeable to tax in the year of transfer, even if no consideration has been received.

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